Update 1 April 2016: The State Government Waiver for headworks ceased on 31 March 2016. Please see below for additional information on the waiver and also for options for developers with existing Planning Permits, where headworks have been conditioned.
Prior to 1 July 2015: Developer charges were made up of three components – works internal to the development, works external to the development and headworks charges for existing capacity in a system consumed by the development.
These three components of Developer Charges can be viewed in the following, very simplified, way:
From, and including, 1 July 2015 spare capacity will be made available to Developers at no charge. That is, the third component of developer charges (headworks) no longer applies.
Further, there is no change to the way in which works internal and works external costs are calculated and funded. For clarity, the distinction is made between works external costs related to system extension and those related to system expansion.
It is a fundamental principle of TasWater’s developer charges approach that a developer only pays Works External costs directly attributable to servicing their specific development.
The new approach to be applied from 1 July 2015 is set out in TasWater’s Developer Charges Policy, and is summarised as follows:
A range of fees and charges also apply, including development assessment fees
and ongoing fixed charges relating to new connections
All costs for providing services to Isolated Developments, being developments not involving any extension and/or expansion of existing TasWater systems, are paid by the developer. TasWater may review the development to assess whether any strategic benefits are delivered by the development and, if so, may at its complete discretion contribute to the development, to increase capacity above that which is required for the development.
Advice Regarding Works Required
Works External required for a development is assessed by TasWater on a case-by-case basis. A developer will only pay Works External costs directly attributable to servicing their specific development.
As assessment is on a case-by-case basis, TasWater will, upon request, provide details of the works required to service a proposed development (including mains connection costs) relating to any Extension or Expansion. The total works can then be independently costed by the developer.
TasWater is developing long-term strategies for its water and sewerage systems, including long-term capital works programs. If TasWater has works programmed that would supply capacity for a development it will discuss this with the developer.
In assessing a proposed development, TasWater will consider any strategic opportunities that are presented and, in such instances, TasWater will fund any marginal cost over and above the cost of assets required to service the proposed development. The developer will only pay the costs required for the development (in terms of the assets required to support the development).
Existing Planning Permits where headworks have been conditioned
The State Government waiver ceased on the 31 March 2016. After this date, any Planning Permit issued prior to 1 July 2015, which has headworks conditioned, will cease to be covered by the waiver and headworks will be payable.
However, developers may apply (through Council) for a minor amendment to their permit (S.56 Land Use Planning and Approvals Act 1993) to allow the development to be reassessed under the new methodology. In most cases the headworks condition will simply be removed, but there are some instances where additional Works External may be required for Expansion, that were previously considered to be accounted for by headworks payments. Additional Works External may require a new permit to be applied for. The decision to apply to amend the permit or for a new permit to be sought is at the developer’s complete discretion.
This approach also applies to any current development that does not qualify for the State Government’s waiver that applies for a reassessment after 1 July 2015.
Developers are encouraged to discuss their options with TasWater prior to submitting any amendment applications to Council.
State Government Headworks Waiver
An information sheet regarding the State Government Headworks Waiver can be found here.
Other useful information
For a copy of the Developer Charges Policy, related policies and information about the Price and Service Plan please refer to the Price and Service Plan page here.